Based on the feedback that we have received from the community and based on the analysis that we have conducted on the staking data that we have gathered thus far, we have come to the conclusion that our staking system needs to be aligned more closely with our long term goals. Most of you will not notice any change in the magnitude of your staking rewards following the implementation of this system upgrade, so this transition will a non-event from your perspective, but we believe that the changes that we are about to make to our staking system will further incentivize long-term staking and will enhance the stability of the Revest ecosystem. To make this transition as smooth as possible, starting on Saturday, October 23, 2021, we will be offering current RVST stakers the opportunity to switch to a longer staking period over the next three (3) weeks, i.e., until Saturday, November 12, 2021.
So what is changing and how will it impact rewards?
In response to the concerns expressed by members of the community regarding the complexity of our initial system, with its pools and sub-pools and the possibility that shorter-term stakers could end up receiving higher rewards than longer-term stakers, we have decided to move to a multiplier-based system. Under this new system, the distribution of rewards across the liquidity pool stakers and the single asset pool stakers will remain equal, but sub-pools will no longer exist. Instead, we will assign a multiplier to each staking tier and this multiplier will increase in magnitude with the length of the staking period according to the following schedule, to incentivize long-term staking:
Each stake in a given pool, i.e., the liquidity pool or the single asset pool, will receive a certain number of “allocation points” according to the following formula:
The individual allocation points will then be summed up across all the stakers who belong to the pool to determine the total number of allocation points for that pool, and each staker’s share of the total amount of rewards distributed to the members of that pool will be set equal to their share of the pool’s total allocation points, as per the following formula:
Hence, under this system, 1, 3, 6, and 12-month stakers each get their rewards from the same pool.
Example 1: Person A stakes 100 RVSTs into the 12-month single asset pool, whose multiplier is set equal to 14x, and the total allocation points for this pool is equal to 140,000. Hence, this person’s stake is equal to 100 * 14 = 1,400 allocation points and her share of the pool’s total allocation points is equal to 1,400/140,000 = 1%. If the number of RVSTs distributed to stakers in that pool is equal to 1,000 for the week, then Person A will receive 1,000 * 0.01 = 10 RVSTs in reward.
Example 2: Person B stakes 1,000 RVSTs into the 1-month single asset pool during the same week as Person A. Person B will receive a 1x multiplier, making her stake worth 1,000 allocation points, and her share of the pool’s total allocation points will be equal to 1,000/140,000 = 0.00714. Since the total number of RVSTs distributed to stakers who belong to this pool is equal to 1,000 for that week, Person B will receive a reward of 1,000 * 0.00714 = 7.14 RVSTs at the end of that week.
“Hey, I chose a shorter period because of the saturation mechanic!”
We hear you! To eliminate this concern, starting on Saturday, October 23, 2021, we will be offering everyone the opportunity to switch to a longer staking period over the next three (3) weeks i.e., until Saturday, November 12, 2021. To do so, just head over to the Revest web app, find your staking FNFT in the gallery, and click on it to open the Revest Info Panel. Here, you will find a new button that will allow you to choose a longer staking period. Naturally, you won’t be able to extend your staking period if you are already staking for 12 months.
This process will only require you to claim the rewards that you have already earned up to this point. Beyond that, you will only need to cover the cost of the gas required to execute the transaction. We do not expect that this change will have any significant impact on the rewards that people are receiving at this time. Still, we hope that this change will incentivize stakers to migrate towards the 12 month tier, and enhance the stability of the Revest ecosystem. We believe this system will be more closely aligned with both the community’s and our Team’s goals for the Revest Protocol. We look forward to getting your impressions on this change!